This strategy uses the Grebenshikov principle, as detailed in 'Forex and We'. This strategy is actually closer to Megascalping in size. Megascalping using the Grebenshikov principle uses the EUR/USD currency pair as its main instrument, different currency pairs can be used. To use this forex scalping strategy you should look to use a reliable broker that offers the MT4 4 trading platform.
Description of the Forex Trading Strategy
You can enter the market using the Bollinger indicators that can be found on all trading platforms, including the MT4 4. Buy stop and sell stop orders can be placed at 20 pips above and below the horizontal channel borders when the Bollinger indicator shows parallel lines. You can use any timeframe.Prior to placing any orders that are pending you should perform some technical analysis on the higher timeframes. For instance, look at D1 before placing any orders on H1. Were the price to be next to the upper channel border using the day timeframe, we place only the Buy stop (and the opposite for Sell stop). You can place a stop-loss at 20 points beneath the channel border opposite.
Transaction Support According to the Trading Strategy
When a pending order has been initiated there are two possible scenarios.
A) The transaction has no profit or it has a profit that closes on a stop-loss because it has not reached 25 points. Here, once there is trend reversal, the sell stop order has been placed using the same principle as buy order previously. I.e. a long transaction closes on stop loss and a short position is then immediately opened. This will also have these same two scenarios.
B) The opened transaction brings an immediate profit. Once the 25 point barrier has passed, the transaction moves to break-even. Should price continue to go in the right direction, trailing stop is used.
When opening up further positions, pending orders are placed 20 points above the maximums using the 4-hour chart. You can place orders after the summary stop for all of the positions that are in a positive area or break even position. Because of the volatility of the forex market this is a safety reason. Another variant would be the movement of an open transaction at break-even when the 25 point mark is achieved. When the stop loss of trailing stop is hit, this is when you take your profit. And finally, it is vital to have a clear and thorough strategy for trading when trading forex due to the complexity of the market.